YCH to develop advanced logistics framework for Chengdu city

Oct 19, 2009 12:00:00 AM

YCH to develop advanced logistics framework for Chengdu city -MOU signed with Chengdu government agencies, cementing YCH�s commitment to invest and jointly develop advanced logistics framework for the city

-YCH issued 400 special �door-to-door express service� truck licenses to enhance Chengdu City�s distribution network, and will introduce efficient world class city supply chain practices into the market and help address growing concerns on food safety

-Milestone in realizing Chengdu City Supply Chain for the growing consumer market

Chengdu, China, 19 October 2009 - YCH Chengdu, the local operations of leading Singapore-based logistics and supply chain management (SCM) company YCH Group, today forged a strategic partnership with various Chengdu City government agencies to establish an advanced logistics framework for the city. As part of the partnership, YCH was issued 400 special truck licenses by the Chengdu City government�s Transport and Logistics Bureau to enable express door-to-door distribution to shorten lead times, increase the efficiency of last mile deliveries and optimize distribution through the introduction of efficient world class city supply chain practices into Chengdu City. It will also allow the company to help address growing concerns on food safety and logistics-related issues pertaining to Chengdu�s consumer market.

The signings for the strategic collaboration projects were witnessed by various dignitaries including Minister Lim Swee Say from Prime Minister�s Office, Singapore and Vice Mayor of Chengdu Mr Wang Zhonglin (6th and 7th from left)

�Today�s MOU signing reinforces YCH�s commitment to invest in Chengdu and the government�s staunch support of YCH as a key partner in enhancing the local logistics industry through our years of experience and heritage of supply chain excellence in Asia. This win-win partnership is a significant milestone for both YCH and the Chengdu government as we work towards realizing the City Supply Chain framework in second quarter of 2010 to serve Chengdu�s growing consumer market. Moving forward, YCH will also continue to grow our China footprint by meeting increasing demand of consumer markets in other tier-two cities,� said Dr. Robert Yap, Chairman and CEO, YCH Group.

"Chengdu City government Transport and Logistics Bureau is pleased to grant 400 special �door-to-door express service� truck licenses to YCH to enhance and optimize city distribution in Chengdu. We believe YCH will help pave the way for more efficient management of vehicles and alleviate traffic congestion in the city," said Mr. Chen Zhongwei, Director of the Modern Logistics Development Office of the Chengdu government.

The award of the licenses will enable YCH to optimize distribution routes and goods loading volume which will alleviate traffic congestion as well as reduce overall logistics costs and air pollution. In line with YCH�s green efforts, the vehicles and equipment will be energy-efficient and aligned to existing green practices. In addition, the licenses will complement YCH Chengdu�s cold chain facility in allowing YCH to counter the shortage of internationally-compliant warehouses and reefer trucks in the region�s cold chain development, to help elevate food safety standards and provide timely delivery of goods to clients in the city throughout the entire day.

�The granting of the special licenses is a strong endorsement by the Chengdu City government of the integrity and efficiency of YCH�s processes and practices in consumer food products distribution. YCH will utilize the special licenses and introduce world-class technologies and processes to develop an advanced logistics framework for Chengdu city and provide the highest standard of city-focused cold chain delivery,� added Mr. Goh Yong Seng, CEO of YCH China.

YCH is also working towards becoming the first ever logistics company to receive food safety certification from the local government, which will provide an assurance to Chengdu�s consumers, as well as an added mark of endorsement for potential food manufacturers.

Vice Mayor of Chengdu City, Mr. Wang Zhonglin welcomed YCH�s advanced logistics framework for the city and gave his endorsement, �We are happy to have Singapore-based logistics leader YCH Group partner us in our development and modernization of Chengdu�s logistics network and infrastructure. Not only will this play an important role in improving our city�s distribution, the upgrading of Chengdu�s logistics capabilities is also a crucial engine in driving Sichuan�s economic growth.�

Mr. Lim Swee Say, Minister, Prime Minister�s Office, Singapore, witnessed the signing ceremony as well. Minister Lim said, �The western region of China offers tremendous scope for trade and investment. Modern services including logistics networking will add to the economic vibrancy of the region. YCH�s foray into Chengdu reflects the growing interest of Singapore companies in meeting emerging needs in Western China. Its collaboration with fellow Singapore-based company Frasers will enable both parties to leverage each other's strengths to establish a strong foothold in Chengdu. This is a mutually beneficial approach as they strive for overseas expansion.�

Even before completion of the Chengdu facility, YCH Chengdu has attracted strong interest from potential customers from the dairy, frozen foods and fresh produce sectors. To date, it is in discussion with several international FMCG companies and retailers planning to set up operations in Chengdu City. Recently, YCH Chengdu has also inked an MOU with global US-based food company Heinz to jointly study and improve Heinz�s West China cold chain distribution for its Long Fong� brand of products � a strong endorsement of YCH�s process excellence in frozen food supply chain.

Chengdu is one of China�s key economic transportation and communications hubs, with a population of more than 11 million and a phenomenal annual average growth of 14.2% over the last few years. YCH partners Frasers Property (China) to manage and operate a state-of-the-art three-level ramp-up facility within the 200,000 sq-m Frasers A-space located in Gaobei, Wuhou District just 5km from downtown and 12km to the airport. The 66,000 sq-m state-of-the-art YCH City Supply Chain Hub incorporating world class ambient warehouse as well as chilled and frozen cold rooms, is aimed at addressing the consumer-driven logistics requirements in Chengdu where consumers reportedly spend more than 75% of their disposable income.

Mr Goh Yong Seng, CEO of YCH China highlighted, �Chengdu is an ideal logistics hub and regional distribution center that allows for International Brand Owners to be well connected throughout Western China, reaching as far as the provinces of Xinjiang, Yunnan and Shaanxi. YCH�s sophisticated Chengdu operations will provide these Brand Owners visibility of product inventory and ensure quality is maintained from factory to shelf as we expedite the efficient distribution of their cold chain products and perishables.�

YCH is one of the pioneer Singapore firms to enter the Chinese market, in Shanghai in 1992. It has built a comprehensive logistics network in the country with presence in gateway cities such as Tianjin, Hangzhou, Xiamen, Shenzhen, Guangzhou, Macau and Hong Kong servicing MNC customers such as Dell, DSM and Motorola.

About YCH Group
Founded in 1955, YCH Group is the leading integrated end-to-end supply chain management and logistics partner to some of the world�s largest companies, including Dell, Motorola, Canon, ExxonMobil, B Braun, LVMH and Royal FrieslandCampina. YCH Group�s suite of innovative award-winning end-to-end supply chain management solutions - Intribution�, Intrabution�, Retrogistics�, Y-Merge� and V-Hub� - employ cutting edge web-technologies that are best-in-class across industry clusters from consumer and electronics to chemical and healthcare, to deliver powerful competitive advantages for customers. The Singapore-based company currently operates throughout Asia-Pacific, including Singapore, Malaysia, Thailand, Indonesia, Philippines, Hong Kong, Australia, China, India, Vietnam and Korea.

A strong proponent of innovation, YCH is recognized for its 7PL� approach in seamlessly integrating supply chain strategy with execution to attain success in the SCM industry. YCH attained the highly-regarded Singapore Innovation Class in October 2005 and was conferred the Asian 3PL of the Year award by Supply Chain Asia in 2007 and 2008. The company is also a consecutive winner of the highly-regarded Frost & Sullivan ASEAN 4 Logistics Awards for being Singapore�s Best Domestic LSP and Best IT/Electronics LSP two years in a row. As a forerunner in worldwide supply chain security, YCH is the first recipient of the ISO 28000: 2007 certification for excellent security management in the global SCM industry. Recently, YCH also clinched the prestigious National Infocomm Award 2008 for its RFIDenabled �High Performance Supply Chain Nerve Centre�.